Understanding Human Development Index of Nepal: A Bayesian Quantile Regression Approach

The present study explores influence of macro-economic variables on the overall wellbeing of Nepalese citizens measured through Human Development Index (HDI). In the present paper, classical Quantile Regression (QR) and Bayesian Quantile regression on HDI is found to be influenced by the mean years of schooling, life expectancy at birth, and purchasing power parity. Six districts of Bhaktapur, Chitawan, Kaski, Kathmandu, Lalitpur, and Manang are observed to have a moderate level of HD whereas majority of 69 districts experience a low level of HD as measured through HDI. Not surprisingly, the national capital Kathmandu records the highest HD. A peculiarity for Nepal is observed that all other districts are placed alarmingly low in respect of HDI from Kathmandu. HDI thus serves to accentuate the inequity and deprivation among districts of Nepal which poses a significant challenge to the goals and initiatives of the political legislation and administrative policies. Priorities for policy intervention and resource allocation for uplifting HD in districts should be targeted proactively by Nepalese government with inputs from the stakeholders among the local population. Statistical Investigations are carried through classical and Bayesian quantile regression approach.